Imdex Ltd · ASX:IMD
Imdex — Morgan Stanley 2018 Australian Emerging Companies Conference
30 slides from Imdex's conference presentation, Jun 7, 2018
Slide 1: ASX cover letter: Morgan Stanley Conference Presentation
For personal use only 7 June 2018 Company Announcements Office ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2001 Dear Sir/Madam Morgan Stanley 2018 Australian Emerging Companies Conference Presentation Please find attached the Morgan Stanley 2018 Australian Emerging Companies Conference P
Slide 2: Morgan Stanley 2018 Australian Emerging Companies Conference
For personal use only Morgan Stanley 2018 Australian Emerging Companies Conference Bernie Ridgeway – IMDEX Managing Director June| 2018 CONFIDENTIAL – Property of © IMDEX Limited
Slide 3: Leading global METS company
For personal use only We are a leading global mining equipment, technology and services (METS) company. Our solutions improve the process of identifying and extracting what is below the earth’s surface for drilling contractors and resource companies – we let clients know where it is and what it is…n
Slide 4: Established Global Business / Operational Leverage
Established Global Business Operational Leverage For personal use only 3
Slide 5: Simple Scalable Structure
Simple Scalable Structure Leading Integrated IMDEX Solutions For personal use only • Focused on integrated IMDEX solutions – comprising leading AMC and REFLEX brands • AMC and REFLEX are dominant within minerals industry – strong market share 4
Slide 6: Leading Technologies / IMDEX Solutions
Leading Technologies IMDEX Solutions For personal use only 5
Slide 7: 1H18 Financial Metrics
1H18 Financial Metrics ($millions) For personal use only $MILLIONS UNLESS INDICATED OTHERWISE 1H18 1H17 VAR VAR% Revenue 104.7 81.8 22.9 28% EBITDA 20.1 13.5 6.6 49% NPAT 10.6 (9.9)1 20.5 EPS (cents) 2.89 (3.42) 6.31 Operating cash flow (excluding financing costs) 2.4 9.8 (7.4) (76%) Net assets 173.
Slide 8: Revenue by Region
Revenue by Region ($millions) For personal use only • Increasing revenue across all regions • Business benefits from global presence and regional expertise • Americas – region with highest revenue and potential for growth • Steady increase in activity during 3Q18 and into 4Q18 7
Slide 9: EBITDA
EBITDA ($millions) For personal use only 20.1 18.0 13.5 10.9 2H18 EBITDA 9.4 7.9 7.7 expected to be 6.2 greater than 1H18 1.2 1H14 2H14 1H15 2H15 1H16 2H16 1H17 2H17 1H18 Additional investment in the business of ~$5 million* 1H18 *Investment includes internal digital transformation program EBITDA up
Slide 10: Balance Sheet
Balance Sheet ($millions) For personal use only 31 DEC 17 30 JUN 17 Cash 12.7 19.4 Receivables 42.4 41.5 Inventory 36.0 29.9 Fixed assets 33.7 32.2 • Robust balance sheet Intangibles 60.0 60.4 • Cash position at 30 June 18 Other assets / deferred tax 28.9 27.5 forecast to be greater than TOTAL ASSET
Slide 11: Market Overview: IMDEX Positioned for Sustainable Growth
Market Overview IMDEX Positioned for Sustainable Growth For personal use only 10
Slide 12: World Mineral Exploration Review and Outlook
World Mineral Exploration Review and Outlook For personal use only • Budget 2017 spend of US$8.4bn up 14% on CY16 • CY18 budgets forecast to increase by 15 – 20% to US$10bn • Gold budgets up by 22% year-on-year • Gold/copper represent >70% of global expenditure. Gold/base metals >80% • The Americas
Slide 13: Market Overview: Drilling Activity
Market Overview Drilling Activity For personal use only Source: S&P Global Market Intelligence The number of mineral exploration drill holes are rising steadily 12
Slide 14: Major Discoveries: Gold and Copper
Major Discoveries Gold and Copper For personal use only Source: S&P Global Market Intelligence Despite increased expenditure, gold and copper discoveries are not keeping up with production – grades decreasing, deeper, more complex ore bodies, more difficult and longer lead times to develop 13
Slide 15: Future of Mining Sydney 2018 Coverage
Future of Mining Sydney 2018 Coverage For personal use only Rio Tinto group head of growth and innovation Stephen McIntosh believes that the pace of technological change across the mining industry is accelerating…"If we don't disrupt our own ways of thinking and operating, we can be sure someone els
Slide 16: Market Overview: Battery Metals
Market Overview Battery Metals For personal use only Source: S&P Global Market Intelligence Lithium and cobalt exploration are rising faster than the average 15
Slide 17: REFLEX Instruments on Hire
REFLEX Instruments on Hire (Number of units) For personal use only REFER TO PAGE 11 16
Slide 18: Strategy: Driving Sustainable Earnings Growth
Strategy Driving Sustainable Earnings Growth For personal use only Growth of core business FY18/19 two-tiered strategy: historically driven by cyclical 1. Organic – protect and upswing and the introduction grow core business of new technologies 2. Transformational – extension into new market segment
Slide 19: Material Characterisation
Material Characterisation Blast holes provide detailed view of in-situ resource For personal use only Characterise material pre blast Differentially load blast holes Generate desired rock fragment size Minimise dilution/increase recoveries 18
Slide 20: The Industry Problem: Exploration
The Industry Problem Exploration For personal use only Increasing Demand for Metals Declining Discovery Rates Easy Deposits Already Found Doubles every 20-30 years Industry is making far fewer Especially in low sovereign risk More copper to be mined in major discoveries despite countries nex
Slide 21: The Industry Problem: Drilling
The Industry Problem Drilling For personal use only Fundamentally nothing has changed in drilling technology in decades. Steel rods manually joined with threads. Usually all rods rotated from surface to generate cutting action at bottom of hole. Thus slow, expensive, injury-prone and inefficient use
Slide 22: CoreVIBE & MagHAMMER: Option to acquire drilling technologies
CoreVIBETM & MagHAMMERTM Option to acquire unique drilling productivity technologies For personal use only Extensive testing and due diligence Technologies are patent protected Option agreement • conducted pre- and align with IMDEX’s rental model executed Jan 2018 signing – including IP protection •
Slide 23: CoreVIBE: Client benefits
CoreVIBETM Client benefits For personal use only 22
Slide 24: MagHAMMER: Client benefits
MagHAMMERTM Client benefits For personal use only 23
Slide 25: Global Leader: Substantial Competitive Advantage
Global Leader Substantial Competitive Advantage For personal use only 24
Slide 26: Summary & Outlook
Summary & Outlook For personal use only • Steady increase in activity during 2H18 • Activity within major mining areas remains robust with increased metred drilled • Major, intermediate and junior companies well-funded with increased budgets • Strong interest in battery metals • There remains a fund
Slide 27: Appendices
For personal use only Appendices
Slide 28: Board of Directors
Board of Directors Professional expertise, business experience & technical knowledge For personal use only Mr Anthony Wooles BCom, MBA (Finance) • Non-Executive Chairman • Appointed to the Board 1 July 2016 Mr Bernard Ridgeway B.Bus (ACCTG) ACA • Managing Director • Appointed to the Board 23 May 200
Slide 29: Company Snapshot
Company Snapshot As at 29 March 2018 For personal use only Corporate Information Share register Analysis of top 50 shareholders at 29 March 2018 ASX listed IMD Institutions 70.0% Share price (29 March 2018) A$ 1.18 Employees, directors & company related parties 2.68% Issued shares m 367.5 Corporate
Slide 30: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Imdex Limited (“the Company”). It contains general background information about the Company’s activities current as at the date of the presentation. It is information given in summary form and does not purport to be complete. Th
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